Taylor Wimpey has outlined mid-term targets that have been described as "ambitious", despite the firm operating in softer market conditions.

The housebuilder’s latest investor and analyst update said that in the medium term, it expects to complete 14,000 homes, with a group operating profit margin of between 16% and 18%.

It added that this growth will be driven by higher outlet numbers, without the need for net land investment as it unlocks the value of its existing landbanks and reinvests in smaller sites.

In its current trading update, Taylor Wimpey said it had delivered a "robust sales rate", following softer market conditions which began in the second quarter.

At week ended 28 September, its total order book dropped by 1.4% to £2.12bn, which represents 7,223 homes.

Taylor Wimpey said that while it is on track to deliver its 2025 guidance range of between 10,400 and 10,800 UK home completions, it remains mindful of various issues that impact customer sentiment, which includes the delayed Autumn Budget.

However, it stated that it remains well positioned for the rest of the financial year.

Investment director at AJ Bell, Russ Mould, said that Taylor Wimpey is keen to get the Budget out the way, even if it brings bad news with "an increase to Stamp Duty being mooted".

He concluded: "The company is seeing some pressure on current trading but notably it is more confident about the medium term, with some relatively ambitious targets being set, and it is also sticking with its current full-year guidance.

"Management will be judged on their ability to deliver on goals around completions, returns and margins. While there are internal drivers for these targets, they are likely to still be at the mercy of property markets and movements in interest rates.

"The hope will be that the strong underlying dynamics behind the UK housing market, with demand largely outstripping supply, proves supportive over time."

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